MILDURA Brewery owner Broo has answered questions from the Australian Securities Exchange (ASX) about why its share price jumped 44 per cent in one day.
Shares in the Langtree Avenue-headquartered company were put in a trading pause on Wednesday morning.
After noon, Broo published its response to a letter from an ASX listing compliance adviser that noted the Broo share price had increased from a low of 1.5 cents on June 2 to highs of 2.6c on June 5 and June 9.
The letter noted that on June 5 in particular, shares went from a low of 1.8c to an intraday high of 2.6c, representing a 44 per cent increase within one day of trading.
Broo was asked if it was aware of any information concerning the company that had not been announced to the market.
The company said in its response it was not aware of such information.
“As previously announced, the company is progressing in negotiations in relation to contract brewing arrangements and is also holding discussions in regard to ongoing funding options and other commercial opportunities,” the response read.
“However, no agreement has been reached in relation to these matters.”
Asked if there was any other explanation for recent trading, Broo provided a link to a blog post on the website Kalkine Media dated May 28, which discussed ASX-listed stocks, including Broo.
The post stated that Broo “actively managed cashflow, reduced overhead costs and implemented positive steps to mitigate the economic effect of government restrictions” during the coronavirus crisis.
It also mentioned the “upward trajectory” of Broo’s share price since a low of 0.8c in March.
Broo in late April said it had experienced a drop in trading activity during the first three months of the year but Mildura Brewery had continued to produce beer under existing sales arrangements.
